March 9, 2009

The global financial crisis claimed a clean sweep of Iceland’s largest banks on Monday after Straumur-Burdaras, the last of the four biggest banks in the country to remain independent, succumbed to mounting pressure and was nationalised.

The bank said in a ­statement: “In spite of its strong capital position and the support of funding banks, Straumur believes its liquidity position is no longer strong enough to sustain activities.”

Straumur’s demise marks the end of a five-month fight to avoid nationalisation after all three of Iceland’s largest banks – Glitnir, Landsbanki and Kaupthing – collapsed in the space of a week in October last year.